Redwood City
Could Lose Millions in State Budget Crunch, Urges Citizens to Learn About
Budget and Inform Legislators

Redwood
City, CA - March 4, 2003 - While the State budget continues to
swirl with uncertainty, the only apparent definite information is that
cities throughout the State, including Redwood City, stand to lose millions
under most of the proposals currently being discussed.
Key among the possible 'hits' to Redwood City is the potential for loss
of the Vehicle License Fee (VLF) 'backfill.' Under the Governor's most
recent proposal, Redwood City would suffer a loss of an estimated $1.5
million this fiscal year, and an estimated $3.3 million next year, followed
by commensurate annual losses on a permanent basis. Other cities would
suffer similar losses, despite the promise made by the legislature that
the VLF would be fully restored, with those funds going to local governments,
in the event that the economy prevents the State from making those reimbursements
to local governments.

Further significant
losses could be experienced if the Governor makes good on his proposal
to confiscate locally-generated funds from local redevelopment agencies,
unless those funds are formally obligated. Such a turn of events would
have grim repercussions for Redwood City in that local redevelopment agencies
would be precluded from issuing debt, and funds that would otherwise go
to local agencies would instead be transferred to the State, thus impacting
many redevelopment projects including low- and moderate-income housing.
Other aspects of the Governor's proposal also hit local governments very
hard, including loss of reimbursement of booking fees, and loss of road
repair funds.

With nearly half of
its annual budget going to fund police, fire, and other public safety
programs, such cuts to Redwood City's funding could have devastating effects
on service levels. Some other cities are worse off, and already developing
plans for staff layoffs and severe service cutbacks.

The City of Redwood
City believes that its constituents should be well-informed of these aspects
of the State budget proposals, and that they should let their State elected
officials know of their opinions on the matter. Redwood City urges interested
citizens to contact their local members of the State Senate and Assembly,
as well as Governor Davis, and clearly articulate their thoughts and outlook
on the State budget situation. People can obtain contact information for
their legislators at www.sen.ca.gov
and www.assembly.ca.gov, and
can reach the Governor's website at www.governor.ca.gov.

Visit Redwood City's
website at www.redwoodcity.org
for information about the City and its services, the community, recreation
programs, education, City government, and local business. Redwood City
news releases are also available online, at www.redwoodcity.org/news.